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  1. Y Combinator1 min

    The AI Economy Is Stabilizing

    Jared Friedman

    By 2025, the AI economy has stabilized into a three-tier ecosystem of model developers, application providers, and infrastructure firms following a volatile 2024. A standardized playbook for building AI-native companies has enabled broad profitability across all layers without any single entity achieving market dominance. This progression reflects steady, incremental improvements in model capabilities rather than revolutionary breakthroughs that would disrupt the current trajectory.